Business Skills – More from the Institute for Women's Entrepreneurship at Cornell

New thing? Subscription Models For Restaurants

Restaurants, including large chains like Panera and P.F. Chang’s, but also local eateries and coffee shops are increasingly adopting subscription models to secure steady revenue and customer loyalty. These subscriptions can offer perks like free delivery, favorite dish selections or free beverages. According to this online piece on AP News, this model is capitalizing on the growing trend of Americans who subscribe to various services like streaming and groceries. While it hasn’t become a dominant aspect of the restaurant marketplace, it is something that small businesses might want to consider to stay engaged and competititve.

Avoid These Pitfalls If You Are A Small Business Owner

This post from LegalZoom which was recently updated in September 2023 highlights the top ten mistakes made by new business owners. The list includes:

Not having a business plan
Not having a marketing plan
Impatience
Overspending
Underpricing
Not forming the right business entity
Thinking you don’t need insurance
Not having a written agreement with your business partners
Failing to protect intellectual property
Thinking you can do it all yourself

Check out the link to read more detail about what to do if you think you are falling short in that area as the post goes into depth on each item in the list.

Advice for Black Women Entrepreneurs

This article from Entrepreneur highlights the unique challenges faced by Black women entrepreneurs and offers three key strategies for success. It emphasizes the importance of bringing one’s own perspective and authenticity to drive change, advocating for diversity and oneself, and staying informed and committed to making a difference in underrepresented communities. The article underscores the significance of resilience, a clear vision, and unwavering commitment in achieving success and positively impacting the world as a Black woman entrepreneur.

What You Need To Know if You Use Venmo or Paypal for Business Payments

Lawmakers are debating changes to tax reporting for business transactions on payment apps like Venmo and PayPal, as well as e-commerce platforms such as eBay, Etsy, and Poshmark. The American Rescue Plan Act of 2021 lowered the threshold for Form 1099-K, which reports third-party business payments. Previously, individuals received this form if they had over 200 transactions totaling more than $20,000. Now, the threshold is just $600, causing concern that many taxpayers might mistakenly receive a 1099-K, even for small, one-time sales. Bipartisan efforts are underway to raise the reporting threshold back to 2022 levels, with some proposals suggesting an increase to $10,000. If you are a small business that receives revenue via these payment apps, it’s essential for to stay organized and be prepared for tax reporting. Read more about the issue in this article posted on CNBC.

Navigating the World of Tipping

In this article from Nerd Wallet, the author explores the new challenges faced by small businesses as they shift from traditional tip jars to digital tipping screens for in-person purchases. Specifically, the article discusses the importance of finding the right balance with preset tipping options so that tipping can be encouraged without upsetting customers. The article also mentions that these screens have led to increased tips, and using a point-of-sale system to track tipping data can provide valuable insights for business management.

Beating Big Businesses For Top Talent When You Are A Small Business

Small businesses and startups struggle to attract top talent due to competition and a lack of qualified applicants. According to this article in Entrepreneur, to address this, they can focus on flexibility in work arrangements, foster a sense of community, create accurate job descriptions, nurture a strong company culture, offer comprehensive benefits, consider remote workers, and emphasize agility and uniqueness. A well-designed recruitment strategy helps small businesses stand out from big corporations and compete effectively in the job market.

Funding Options for Entrepreneurs With Bad Credit

Women entrepreneurs with poor credit scores have a few lending options to check out when getting a business loan. One option is nonprofit lenders that focus on helping women-led startups get funding. Another option is alternative lenders with less strict requirements. Even if your credit is bad, there are still possibilities to secure funding for your business. Check out this this article in Forbes for resources that can help with funding!

Challenges Faced by AAPI Women Entrepreneurs in the Pandemic Era

The COVID pandemic has worsened existing challenges for Asian American, Native Hawaiian, and Pacific Islander (AAPI) women entrepreneurs. Many AAPI-owned businesses have been hit hard, especially in industries heavily affected by the pandemic.

Language barriers and a lack of banking relationships have limited their access to loans and capital. AAPI women face a wage gap and have shouldered increased caregiving responsibilities. Despite these obstacles, AAPI women entrepreneurs remain resilient and determined to overcome the challenges they face. See this April 2023 post from CNBC to read more.

Where Should Small Businesses Keep Their Cash?

After three recent failures of medium-sized banks, many small business owners are worried about the safety of their money. According to this article from Investopedia, experts recommend diversifying deposits across multiple institutions to stay within the $250,000 FDIC limit. In addition, small businesses may want to approach credit unions and small banks as they may offer better terms. Check out the article for more thoughts on the topic.

Starting a Business With Little to No Capital

Owning your own business offers flexibility, creative freedom, and unlimited income potential. Lacking financial resources doesn’t mean you are out of luck! According to this article in Forbes, it is possible to still start a business with limited funds. no money. Some tips from the article include: keep your day job while working on your business during your free time, choose a business idea that doesn’t require upfront capital (such as freelance writing, virtual assisting, or social media management), scale up gradually, and utilize free resources and networking opportunities. Check out the link to the article to read more!